Hedging agricultural crops using options can be a very useful risk management tool if used correctly. The number one focus of any grain producer’s marketing year is to make “cash sales” at the best possible price. However, this is much easier said than done. Why? Because we can’t predict the future. Therefore, savvy producers use… Read more.
Basic Mechanics of Agricultural Options
Learn about Agricultural Options!
Creating a Futures Portfolio
At the end of the day, most traders and investors are searching for something that works. For them, this involves ways to limit risk while trying to extrapolate upside opportunities. But, the question remains: how can we find simple and effective ways to do this?
Effective Habits of Successful Traders: Understanding Expected Value
Expected value (EV) or expectancy is a very important trading concept that few traders understand and actively discuss as an element of their trading. So what is EV and why is it so important? EV is simply the average result over a number of trades. Mathematically, it is the sum of the probability of winning/losing… Read more.
Effective Habits of Successful Traders: Keeping a Trade Log
Your trade log is your map guiding your trading by effectively evaluating your strengths and weaknesses to help you reach your goals. Your compass is your “trading framework”, something that will be covered at another time.
Effective Habits of Successful Traders: Why Do I Trade?
Why do I trade? It’s a simple question, yet the vast majority of traders have not outlined why they trade. How much time have you spent thinking about it? Have you ever written down why you trade? If you haven’t, how do you know what your true motivations are? Have you sorted out what your… Read more.
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